Canada Enterprises (BCE) : Nikita Gulgule (B19031) Snehal Tiwari (B19031) Anusha Sinha (B19068)

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THE BID FOR BELL

CANADA ENTERPRISES
(BCE)

Nikita Gulgule (B19031)


Snehal Tiwari (B19031)
Anusha Sinha (B19068)
Case Background
Analysis
WACC used for PE Acquisition WACC used for Merger with Telus
Recommendation

Ripe for PE Acquisition Debt Value Exit Strategy


Acquisition For the acquisition, PE firms For acquisition, 80% of the The PE firm acquiring BCE
We recommend that the should be the first choice transaction value would be can sell it to a strategic
firm BCE is ripe for acquirers. This is because of secured as debt. This would also investor after a few years
acquisition, as the the significantly high cost reduce the covenants associated when the company has
synergies that can be with the debt. Additionally, before been able to realize higher
management team is not proceeding with the debt, the PE
performing well, the current achieved through corporate value. This would help the
firm should ensure that the
scenario is not well for the restructuring of the macroeconomic factors are stable,
PE firm sell BCE for a high
company, but its future management and the so that the synergy values are ROE.
outlook looks positive. company. realized.

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